Incentive scheme for continuity of supply in the Swedish revenue cap regulation from 2020

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CIRED 2019 - 946.pdf (602.59 KB)

Paper number

946

Working Group Number

Conference name

CIRED 2019

Conference date

3-6 June 2019

Conference location

Madrid, Spain

Peer-reviewed

Yes

Short title

Convener

Authors

Wallnerström, Carl Johan, The Swedish Energy Markets Inspectorate , Sweden
Huang, Yalin, The Swedish Energy Markets Inspectorate , Sweden
Wigenborg, Gustav , The Swedish Energy Markets Inspectorate , Sweden
Ström, Lars , The Swedish Energy Markets Inspectorate , Sweden
Johansson, Tommy , The Swedish Energy Markets Inspectorate , Sweden

Abstract

The national regulatory authority (NRA) for energy in Sweden, the Swedish Energy Markets Inspectorate (Ei), determines a revenue cap for each distribution system operator (DSO) and for the transmission system operator (TSO) for a regulatory period of four years at a time. The revenue cap is adjusted based on e.g. the performance regarding continuity of supply (CoS). Ei aims to continuously evaluate and improve the regulatory framework for DSOs and the TSO.This paper describes the CoS incentive scheme with extra focus on upcoming changes from next regulatory period 2020-2023. There are two more significant changes, new interruption cost parameters based on a recently published study and changed CoS indicators to consider the specific size of each customer (power weighted indicators). Furthermore, the legislation regarding interruptions ≥12 hours has been changed. The impact of all changes combined will be stronger incentives (higher rewards and penalties, while he average outcome still will be close to zero) and that the estimation of energy and power not supplied will be less approximative.Finally, the way of calculating the max reward or penalty allowed from this incentive scheme together with the incentive scheme for efficient utilization (described in a parallel CIRED paper) will also be changed.

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Publisher

AIM

Date

2019-06-03

Published in

CIRED 2019 Conference

Permanent link to this record

https://cired-repository.org/handle/20.500.12455/212
http://dx.doi.org/10.34890/417

ISSN

2032-9644

ISBN

978-2-9602415-0-1